by W.T.R
Background
Indonesia through Law of the Republic of Indonesia Number 3 of 2022 on Capital of the State determine to move the Capital of Indonesia from Special Capital District of Jakarta to Capital of Nusantara (Ibu Kota Nusantara or IKN) as stated in Article 4 paragraph 1 Law Number 3 of 2022. Capital of Nusantara is a region which currently under development, that region is become to be a central core area of Indonesian Government. Capital of Nusantara are covering land area of 256,142 ha and sea waters area approximately 68,189 ha.
Relocating the country’s capital city to the new Capital City of Nusantara (IKN) is not just relocating ministries buildings, presidential palace, or vice presidential palace to the IKN but Indonesia wants to develop a new work culture, new mindset, and the IKN as a new economic base. According to Minister of National Development Planning / Head of the National Development Planning Agency, IKN will be developed with the theme of “The Global City for All”, which will highlight the start of new Indonesian civilization. “The name Nusantara for the New Capital City of Indonesia will represent the concept of unity that accommodates the super-diversity of Indonesia. The reality of Indonesia’s diversity will become social capital to lead people to prosperity, to achieve an advance, a resilience, a sustainable Indonesia”.
Development Arrangement of Capital of Nusantara (IKN) is based on the vision as world’s city for the entire project currently built and managed with the purpose to: (1) be sustainable city in the world; (2) be the driver of the Indonesia’ economic in the future; and (3) be the national identity symbol that represent the diversity of Indonesia’ people, based on Pancasila and the 1945 Constitution.
IKN’s Basic Principles of the Development
The basic principles of the development in IKN region are based on eight principles which prioritizing the essential of nature, technology, and environmental sustainability. IKN development planning is woven with a sustainable concept to harmoniously balance natural ecology, built environment, and social systems. Apart from that, the basic principles for the development of IKN also guard against the possibility of bad impacts of urbanization and extreme weather which can increase the risk of disasters, such as floods and shortages of raw water. Therefore, the basic principles for the development of the IKN area will combine three urban concepts, namely IKN as a forest city, sponge city, and smart city.
The development of the IKN area and the three urban concepts cannot be separated from partner cities around other IKNs and will not be successful without the support of the surrounding cities. Thus, the application of IKN as a forest city, sponge city, and smart city must prioritize harmonious cooperation with the surrounding partner cities.
Forest cities concept are cities that are dominated by forest-structured landscapes that have ecosystem service functions, such as forests, and aim to create life side by side with nature’. In its development concept, forest cities will be designed according to natural conditions to create life side by side with nature with the aim of supporting sustainable development, in particular maximizing carbon absorption and conserving biodiversity, as well as supporting environmental management to improve environmental quality.
Sponge cities concept are widely applied in IKN especially to restore the natural cycle of water that has changed due to development. Application of this concept will provide the benefits of water harvesting for additional water availability and reduction of flood hazard, benefits of water purification and ecological preservation, efficiency of resource systems, as well as recreational benefits for the community. Sponge city refers to a city that acts like a sponge that is able to hold rainwater so it does not run over directly into drainage canals and which is able to increase infiltration into the ground so that the danger of flooding can be reduced and the quality and quantity of water can be increased through soil filtering and storage in the ground
Smart City concept has been considered as an overarching element in affirming the development of IKN as the new capital city of Indonesia which is dynamic, inclusive, supported by the community, and ready to face the future. The smart city component in IKN Master Plan identifies digital or technological added value elements to provide greater benefits to the IKN. The IKN Master Plan focuses on Smart Initiatives that must be prioritized by IKN, such as: access and mobility; environment and climate; security and safety; public sector; urban systems; and livability and dynamics.
IKN’s Opportunities
Economic growth that is more inclusive and equitable through accelerated development in Eastern Indonesia which is leveraged by the development of IKN as an economic superhub is one of the main success factors for realizing Indonesia’s Vision 2045. The IKN superhub concept is designed to operate at three interrelated levels and integrated in the vision Reimagined Indonesia: Locally Integrated, Globally Connected, Universally Inspired.
The vision of Locally Integrated means that the IKN economic superhub will change the face of the Indonesian economy so that it becomes more inclusive through the three-city strategy (IKN, Balikpapan and Samarinda). The vision of Globally Connected is that the IKN economic superhub will drive advanced and highly competitive economic activities in order to be able to place Indonesia in a more strategic position in world trade routes, investment flows, and technological innovation. And the Universally Inspired vision is that the IKN economic superhub will be built on the best examples of smart, inclusive and sustainable cities in the world.
There are several investment opportunities that can be maximized in several sectors to developing economic in IKN area, such as:
- Investment in efforts to develop the clean technology industry with the mission of providing products that support mobility and environmentally friendly utilities such as solar panel assembly and electric vehicles.
Indonesia is currently focusing on switching to a clean technology industry through the use of solar panels in residential areas, but this technology is still quite expensive so there is still little interest from the public, investment in this field will have great potential if it can reduce the price of using solar panels in residential areas.
In addition, electric vehicles are also an option for Indonesia to switch to a clean technology industry. The IKN Ecosystem will maximize the use of electric vehicles in the IKN Nusantara environment in order to create a clean environment and SDGs. In order to support this, Indonesia is in the stage of making regulations to cut the price of electric vehicles so that they are more affordable to the public. Investments in the manufacture and transfer of e-vehicle technology will be great interest to the Government of Indonesia.
- Investment in efforts to develop new renewable energy in the IKN economic superhub area with the mission of optimizing the use of new, low-carbon and sustainable energy such as hydroelectric power plants, nuclear power plants, biofuels and coal gasification.
The need for renewable energy sources such as nuclear power plant based on fossil energy sources which have been the main pillar of electricity generation in Indonesia, is starting to diminish and the increase in demand for electricity from various sectors has increased on average, which is around 7% per year, it will be difficult if we only rely on electricity with fossil material. Demands for electricity needs and a clean environmental quality are also requirements that must be met in future electricity generation.
Indonesia has had an interest in having a nuclear power plant since 1970 and until now it has not been fulfilled. With the construction of the IKN Nusantara which is based on green environment principles, investment in nuclear power plants can be one of the offers that is urgently needed by the Government of Indonesia.
- Investment in the development of the pharmaceutical industry is integrated with the mission of developing a cost-efficient and best-in-class pharmaceutical manufacturing center for greater health security and resilience. Its development is focused on the production of generic, biosimilar and biologic active drug ingredients (API) to meet increasing domestic demand and strengthen national resilience against health threats.
Based on the covid-19 pandemic experience we have learned that the global threat doesn’t only come from the threat of war but the threat of a virus that is difficult to overcome can cause massive problems. So, cooperation in the health sector both in joint research, the construction of the best health facilities will be the great interest to Indonesia
- Investment and Cooperation in the development of a sustainable agricultural industrial sector with the mission of developing a center for plant-based food production and innovation that is sustainable and responsive to future health/fitness trends, its development focuses on plant protein, herbs and nutrients, as well as plant extract products. Also, trade cooperation can also be carried out in the agricultural sector where Indonesia is very rich in agricultural products.
- Investment and Cooperation in military defense, The location of the Archipelago’s IKN is very vulnerable to traditional and non-traditional threats. Therefore, massive investment is needed to strengthen defense in IKN Nusantara.
One of the defense system concepts in the IKN waters area which is contained in the IKN development arrangement is to develop a maritime virtual gate at the ALKI-II gate, precisely in the Makassar Strait in the form of a modern technology system with imaginary architecture to function to identify the movement of people, goods, or other instruments that either on the surface of the sea or under the sea.
This maritime virtual gate consists of active sonar, active and passive sensors, radar, optics and infrared, its more likely a huge metal detector under the sea. That’s why to developing this technology, Indonesia needs help from developed countries. To provide better surveillance, Indonesia also need to build the command center, patrol boat, submarines and sophisticated weaponry.
IKN Nusantara also faces threats from Intercontinental Ballistic Missile (ICBM) from from big countries in the region, that’s why cooperation in fulfilling long-range detection radars and anti-ballistic missiles will be very useful for the defense of IKN Nusantara.
Indonesia is very open to investment opportunities as much as possible in the development of IKN, such as ease of access in investing and exemption from tax fees, with hopes that this policy can trigger big countries to invest in multi sectors area. However, investment in Indonesia will be more appreciated if the cooperation clause includes technology transfer.
